XML 50 R31.htm IDEA: XBRL DOCUMENT
v3.20.4

Income Taxes (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
Income Tax Disclosure [Abstract] |
Income Before Income Taxes | For the years ended December 31, income (loss) before income taxes consisted of the following:
In millions | 2020 |  | 2019 |  | 2018
(Loss) income before income taxes |  |  |  |  |
United States | $ | (41) |  |  | $ | (85) |  |  | $ | (79) |
Foreign | 17 |  |  | 72 |  |  | 106 |
Total (loss) income before income taxes | $ | (24) |  |  | $ | (13) |  |  | $ | 27 |
Income Tax Expense | For the years ended December 31, income tax (benefit) expense consisted of the following:
In millions | 2020 |  | 2019 |  | 2018
Income tax (benefit) expense |  |  |  |  |
Current |  |  |  |  |
Federal | $ | (45) |  |  | $ | (3) |  |  | $ | (10) |
State and local | 1 |  |  | — |  |  | 6 |
Foreign | 9 |  |  | 13 |  |  | 19 |
Deferred |  |  |  |  |
Federal | 34 |  |  | (10) |  |  | (20) |
State and local | 6 |  |  | (1) |  |  | (4) |
Foreign | (158) |  |  | 8 |  |  | 6 |
Total income tax (benefit) expense | $ | (153) |  |  | $ | 7 |  |  | $ | (3) |
Effective income tax rate | 637.5 | % |  | (53.8 | %) |  | (11.1 | %)
The Difference Between the Effective Tax Rate and the U.S. Federal Statutory Income Tax Rate | The following table presents the principal components of the difference between the effective tax rate and the United States federal statutory income tax rate for the years ended December 31:
| 2020 |  | 2019 |  | 2018
Income tax expense at the U.S. federal tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Foreign income tax differential | (20.8) | % |  | (49.2) | % |  | 2.1 | %
U.S. tax on foreign earnings | (16.7) | % |  | (8.4) | % |  | 2.0 | %
State and local income taxes | 25.0 | % |  | 58.2 | % |  | (25.0) | %
U.S. permanent book/tax differences | (4.2) | % |  | (17.0) | % |  | (2.7) | %
U.S. research and development tax credits | 25.0 | % |  | 68.5 | % |  | (29.5) | %
Change in valuation allowance | (25.0) | % |  | (49.1) | % |  | 27.7 | %
Tax impact of NOL carry-back under the CARES act. | 79.2 | % |  | — | % |  | — | %
Tax impact of equity compensation | (66.7) | % |  | (49.3) | % |  | (1.4) | %
Deferred tax impact from intra-entity IP transfer | 654.2 | % |  | — | % |  | — | %
Tax impact of U.S. Tax Reform/Transition Tax | — | % |  | — | % |  | (23.9) | %
Tax Impact of uncertain tax positions | (29.2) | % |  | (24.6) | % |  | 20.2 | %
Other, net | (4.3) | % |  | (3.9) | % |  | (1.6) | %
Effective income tax rate | 637.5 | % |  | (53.8) | % |  | (11.1) | %
Deferred Income Tax Assets and Liabilities | Deferred income tax assets and liabilities included in the balance sheets at December 31 were as follows:
In millions | 2020 |  | 2019
Deferred income tax assets |  |  |
Employee pensions and other liabilities | $ | 62 |  |  | $ | 63 |
Other balance sheet reserves and allowances | 13 |  |  | 18 |
Operating lease liabilities | 10 |  |  | 14 |
Tax loss and credit carryforwards | 105 |  |  | 80 |
Deferred revenue | 7 |  |  | 12 |
Intangibles and capitalized software | 155 |  |  | — |
Total deferred income tax assets | 352 |  |  | 187 |
Valuation allowance | (51) |  |  | (45) |
Net deferred income tax assets | 301 |  |  | 142 |
Deferred income tax liabilities |  |  |
Intangibles and capitalized software | — |  |  | 8 |
Right of use assets - operating lease | 9 |  |  | 13 |
Property and equipment | 52 |  |  | 12 |
Other | 25 |  |  | 28 |
Total deferred income tax liabilities | 86 |  |  | 61 |
Total net deferred income tax assets | $ | 215 |  |  | $ | 81 |
Liability Related to Uncertain Tax Positions | Below is a roll-forward of the Company’s liability related to uncertain tax positions at December 31:
In millions | 2020 |  | 2019
Balance at January 1 | $ | 37 |  |  | $ | 34 |
Gross increases for prior period tax positions | 6 |  |  | 4 |
Gross increases for current period tax positions | 2 |  |  | 5 |
Decreases due to the lapse of applicable statute of limitations | (2) |  |  | (6) |
Decreases relating to settlements with taxing authorities | (4) |  |  | — |
Balance at December 31 | $ | 39 |  |  | $ | 37 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=84230637&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32840-109319 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration